Transportation costs for shipping U.S. wheat to Japan fell across all major export routes during the second quarter of 2025, according to the Grain Transportation Report released by the U.S. Department of Agriculture.
The quarterly analysis showed costs declined for shipping wheat from Kansas and North Dakota through both Pacific Northwest and U.S. Gulf ports, with decreases ranging from 3 to 5 percent compared to the first quarter.
Year-over-year comparisons revealed even larger drops, with transportation costs falling between 2 and 12 percent depending on the route. The Kansas-Gulf route experienced the steepest annual decline at 12 percent.
The quarter-to-quarter decrease primarily resulted from lower truck and rail freight rates for Kansas wheat and reduced truck rates for North Dakota wheat. The year-to-year decline stemmed from drops in rail and ocean vessel rates for Kansas wheat and lower ocean rates for North Dakota wheat.
"Ocean freight rates for shipping wheat from PNW were up 1 percent quarter to quarter and down 17 percent year to year. Gulf-route ocean rates increased 1 percent from quarter to quarter and fell 24 percent from year to year," the report stated.
Farm values also decreased, contributing to lower total landed costs, which include both farm value and transportation expenses. Total landed costs fell between 3 and 6 percent quarter-to-quarter and between 9 and 14 percent year-to-year.
Transportation costs represented 37 percent of total landed costs for Kansas wheat shipped through the Pacific Northwest, and 33 percent for North Dakota wheat through the same route.
During the second quarter, wheat inspected for export to Japan totaled 0.501 million metric tons, down 19 percent from the previous quarter but up 2 percent from the same period last year.
According to USDA projections, total U.S. wheat exports for marketing year 2025/26 are expected to reach 23.81 million metric tons, up 6 percent from the previous marketing year.
